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"The time has come for a regulatory reset for the paper industry bringing investment back to Europe” says Sylvain Lhôte, CEPI’s Director General
A European Commission real-time study on our sector has revealed that over the past 10 years, direct regulatory costs have more than tripled. On average, direct and ETS-related indirect regulatory costs have absorbed more than 40% of the industry’s annual profitability since 2004.
While the paper industry is engaging in major transformation of its production base to capture both growth opportunities and dramatically reduce its CO2 emissions, such regulatory burden diminishes our investment capability and deters international capital allocation into Europe.
The cumulative cost impact assessment performed for the European Commission by Technopolis reveals the full scale of regulatory costs in the fields of climate, energy and environment policies (2/3 of alone which arise from climate change & energy regulations). Despite EU leader’s pledge for smarter regulation and investment in industry, these costs have not subsided in the period since 2004. Planned regulation for biomass-based large combustion plants, ETS and energy-related policies may indeed widen the regulatory cost burden.
In order to prevent the continued erosion of industry’s competitiveness, the EU and its member states must rapidly restore the conditions necessary to fuel transformative investments. Together with the European Commission we share a common agenda on climate change and sustainability, as evidenced by our 2050 vision to decarbonise by 80% and create 50% added-value. We envision ourselves as leading the transition to a circular, low carbon bioeconomy. We therefore ask the Commission and EU member states to act decisively and put back climate, energy & environmental policies on a pro-investment track.
The full text of the study is available here.
Below you will find the study slipt into several main parts.
(iii) legislation overview
You may also check out our easy-to-use infographic that breaks down the study's key findings.
For more information, please contact Bernard Lombard at email@example.com or by phone at (+32) 2 627 49 22
Note to the Editor
Session at European Paper Week. A discussion of the study took place on 24 November at European Paper Week at a dedicated session “EU Regulations: How heavy is the financial burden for our industry?” together with Technopolis and other key thought leaders.
The session's presentations are available below:
Projected timeline: CEPI will continue to remain at the forefront of discussion on smart regulation & industrial policy. Building on our activity at European Paper Week we will continue together with our national members to raise the issue with our stakeholders throughout November and December and into 2017.
CEPI aisbl - The Confederation of European Paper Industries
The Confederation of European Paper Industries (CEPI) is a Brussels-based non-profit organisation regrouping the European pulp and paper industry and championing the industry’s achievements and the benefits of its products. Through its 18 member countries (17 European Union members plus Norway) CEPI represents some 505 pulp, paper and board producing companies across Europe, ranging from small and medium sized companies to multi-nationals, and 920 paper mills. Together they represent 23% of world production.
Closing the gaps on the circular economy in Europe? Export data reveals a widening rift.
Market data has shed light on the creeping trend to export paper for recycling outside of Europe rather than effectively recycling it in Europe in sustainable manner. The latest reports demonstrate a 7.1 % increase in export in 2015 which is equivalent to as much as 679,000 tonnes of paper sent for recycling outside Europe, a worrying development if not put in reverse. Annually around 10m tonnes of paper for recycling leave Europe.
It has been estimated that keeping this material stream in Europe to feed our industry could create up to 140,000 jobs. The increasing export of valuable paper for recycling presents a clear gap in Europe’s circular economy ambitions. This shows that effective regulation is needed to ensure recycling is done both inside and outside Europe at equivalent environmental standards and that we effectively measure what is recycled in Europe and avoid encouraging alternative means for meeting objectives under the circular economy package.
Let’s keep paper recycled in Europe for Europe to truly make the circular economy a reality.
For a more in-depth insight into key statistics on the European pulp and paper industry, check out CEPI’s statistical booklet here or contact Ariane Crevecoeur at firstname.lastname@example.org or by phone at (+32) 2 627 49 35
For more information on paper and circular economy please contact Ulrich Leberle at email@example.com or by phone at (+32) 627 49 11
In spite of the difficult economic context and an increased competition in the global markets, the European pulp, paper and board industry remains a world leader and a net exporter as well as the provider of 1.5 million direct and indirect jobs in Europe.
EU markets have been fully open since January 2004, unlike some competitors in their home countries. 40% of EU paper and board exports face tariff barriers! The sector is seeking a level playing field for both its products and its raw materials through multilateral and bilateral negotiations and high level talks with EU trading partners. Free access to pulp and paper and board foreign markets, but also raw materials and energy is a must.
Fair competition is also vital to the European pulp, paper and board industry and its workers, who need to see unfair trade practices such as dumping and subsidies, protectionism and discriminatory measures fought. A strong set of trade defence tools is crucial to ensure, when necessary, the rapid implementation of efficient trade defence measures and restore a level playing field for our industry and workers. Strong support from the EU Commission is required in order to secure international trade rules and WTO obligations as well as bilateral agreements are well implemented by all EU trading partners and WTO members.
The opening of the foreign markets has to be achieved primarily through multilateral negotiations in WTO, by reflecting the recent developments that have seen emerging countries like China, Brazil or Indonesia turning into global industrial leaders.
As multilateral agreements require long negotiations and sustained efforts, a better access to foreign markets, raw materials and energy markets should be sought through the conclusion of ambitious bilateral trade agreement negotiations with a view to supporting the re-industrialisation of Europe and to promote the principles of fair trade. These negotiations should contribute to the suppression of tariff barriers as well as non-tariff barriers, and aim at regulatory convergence.
Plurilateral negotiations should also be encouraged as they can offer a pragmatic way to further liberalise trade while achieving other goals, such as the completion of ambitious climate change and environment protection targets. The European Social Partners in the pulp, paper and board sector are of the opinion that, due to their sustainable nature, all pulp, paper and board grades should be considered as environmental goods and therefore fully included in the environmental goods list currently being negotiated.
Pulp, paper and board are based on renewable raw materials originating from sustainable sources and are recyclable. They contribute directly and indirectly to environmental protection, climate action, green growth and sustainable development. They are manufactured by an industry that has substantially reduced its footprint on the environment, while reaching high social standards.
At the core of the bio economy, is the production of not only the original bio-based product - paper and board, but also new and innovative products that can substitute for fossil fuel-based products through the efficient use of renewable raw materials.
Allowing the European pulp, paper and board industry to compete on a level playing field at global level should be the aim of EU trade strategy as it is the best way to secure EU’s competitiveness as well as investors’ long-term commitment to Europe and create jobs and growth!
A landmark study by the Economic Policy Institute (EPI) released last week reveals that if the EU grants Market Economy Status (MES) to China, the EU could lose 3.5 million jobs and 2% of GDP. Read AEGIS Europe press release here.
CEPI is a member of the AEGIS alliance. Follow AEGIS on Twitter @AEGISeurope
Industrial policy is back! European paper industry strongly welcomes European Commission’s renewed focus on industrial policy
Today European Commissioner Bieńkowska presented to the European Parliament her views on a new industrial policy for Europe. The Commissioner has done this in a new and refreshing approach, by sending a letter to the member states instead of yet another Communication from the Commission. The policy builds on the 20% industrial GDP target set by the former Commission.
“European industrial competitiveness is at the heart of the policy agenda of the European Commission”, said the Commissioner in the European Parliament today.
The new approach will mainstream industrial policy perspectives in all EU Commission policies launched by this Commission. The aim is to break down the silos in the Commission and really integrate the Commission’s work, in a partnership between business and policy makers.
“We feel the Commission has understood that industry is at the heart of European growth. That it provides real jobs to real people and that we have the potential to grow industry in Europe” said Marco Mensink, Director General of the Confederation of European Paper Industries (CEPI).
CEPI welcomes the new High Level Group on Energy Intensive Industries that Commissioner Bienkowska has initiated. This will focus among other on the upcoming debate on the market economy status of China and the review of the EU Emission Trading System. Both are crucial files for the future of the paper industry in Europe.
The review of the EU ETS will be the first proof of the mainstreaming approach. "The EU ETS review is the single largest industrial policy decision for this Commission.” says Marco Mensink. “We look forward to an ETS proposal that combines a focus on carbon reduction and breakthrough innovation with a proper protection of all energy intensive industries. The European Council in October last year decided that the best companies in the energy intensive sectors such as the pulp and paper industry should not face undue carbon costs. The Commission shall now put this in practice in the EU ETS proposal that will be launched July 15th”.
For more information, please contact Annie Xystouris at firstname.lastname@example.org mobile: +32(0)486243642.
Note to the Editor
The pulp and paper industry provides 180,000 jobs in Europe directly, and 1.5 million in the value chain. It has a turnover of 75 billion euros and adds 15 billion euros to the EU GDP. It is strong in export markets and will invest 5 billion euros in Europe up to 2017.